REPORT
Assignment 1
Result 2
Tax position 4
ANNUAL REPORT
Report of the Board of Directors 5
Financial statements
Balance sheet as at 31 December 2007 6 Income and expenditure for the year 2007 7 Notes to the balance sheet as at 31 December 2007 8 Notes to the income and expenditure account for the year 2007 11 Other information
Dear Trustees,
Assignment
In compliance with your assignment we have audited the financial statements for the year 2007 of your Foundation, including the balance sheet giving totals of € 152.143 and the income and expenditure account with a result of negative € 77.165.
RESULT
Comparative statement
The result for the year 2007 amounts to negative € 77.165 against positive € 137.354 for 2006. The results for both years can be summarized as follows:
2007 2006 Change
€ % € % €
Donation Revenue 855.824 100 506.461 100 349.363
List rental 23.096 2,7 - - 23.096
Support from “Hospitaller Order
of St. John of God” - - 180.169 35,6 -180.169
878.920 102,7 686.630 135,6 192.290
Costs
Expenses for projects 260.500 30,4 98.069 19,4 162.431 Wages and salaries 38.533 4,5 25.195 5,0 13.338
Social Charges 5.353 0,6 3.548 0,7 1.805
Insurance 545 0,1 0 0 545
Other operating expenses 651.602 76,1 422.771 83,5 228.831
956.533 111,8 549.583 108,6 406.950
Costs
Operating expenses increased with 74,0% The breakdown is as follows:
2007 2006 2007 vs. 2006 € % € % € % Expenses for projects 260.500 27,2 98.069 17,8 162.431 165,6% Employments costs 44.431 4,6 28.743 5,2 15.688 54,6% Accommodation expenses 13.086 1,4 15.582 2,8 -2.496 -16,0% Office expenses 13.423 1,4 31.205 5,7 -17.782 -57,0% General expenses 18.554 1,9 15.429 2,9 3.125 20,2% Selling expenses prospective donors 448.801 46,9 274.991 50,0 173.810 63,2% Selling expenses existing donors 90.225 9,4 85.564 15,6 4.661 5,4% Donor administration 67.513 7,2 0 0 67.513 - 956.533 100 549.583 100 406.950 Supported projects 2007
Project Country Centre Total €
Vehicle Cameroon Nguti 10.000
Support for hospice China China 10.000 Support for Zambia Zambia Monze 25.000 Support for Malawi Malawi Mzuzu 147.000 Renovation of Centre Senegal Thies 10.000 New hospital - seed money Ghana Koforidua 35.000 Self-help programme Sierra Leone Lunsar 23.500
TAX POSITION
Tax
Stichting Internationale Orde van Hospitaalbroeders has got an exemption for the VAT and corporation tax. This exemption is given by the Dutch tax authorities because of the charity activities of Stichting International Orde van Hospitaalbroeders.
We will pleased to provide any additional information if required. Yours sincerely,
Arenthals Grant Thornton Accountants en Adviseurs B.V.
PRINCIPAL ACTIVITIES
Stichting Internationale Orde van Hospitaalbroeders (The Foundation), located at the Gasthuisvest 13 zwart, is a charity which raises funds primarily for health services in developing countries, especially in Africa. The foundation is part of the Hospitaller Order of Saint John of God, which has founded 500 years ago and is active in 50 countries worldwide. STATEMENT OF RESPONSIBILITIES OF THE TRUSTEES
The trustees require financial statements to be prepared for each year in accordance with the accounting policies of The Foundation. The financial statements are to give a true and fair view of the state of affairs of The Foundation and the result of the Foundation in that period. Accordingly, the trustees must ensure that in the preparation of the financial statements;
• Suitable accounting policies are selected and then applied consistently • Responsible and prudent judgements and estimates are made
• Material departures from applicable accounting standards are disclosed and explained; and
• Financial statements are prepared on the going concern basis unless it is inappropriate to presume that the foundation will continue
The trustees are responsible for keeping proper books of accounts which disclose with reasonable accuracy at any time the financial position of The Foundation. They are also responsible for safeguarding the assets of The Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
BOOKS OF ACCOUNT
The measurements taken by the Trustees to secure compliance with its obligation to keep proper books of account are the use of appropriate systems and procedures and employment of competent persons. The books of account are kept at Stichting Internationale Orde van Hospitaalbroeders, located at the Gasthuisvest 13 zwart, Haarlem.
LEGAL STATUS
The Foundation is a stichting in accordance with article 24 sub 4 of the Successiewet 1956. Hospitaalbroeders are also registered at the Chamber of Commerce in Haarlem at number 41058935.
RESULTS
The result for the year is disclosed on page 7 FUTURE DEVELOPMENTS
The Foundation incurred additional increased expense in the current year to build up a base of donors. The increase in donors will lead to increase income in 2008 and future years. PRINCIPAL RISKS AND UNCERTAINTIES
The decease of support from donors is considered to be a principal risk. SUBSEQUENT EVENTS
There were no subsequent events for disclosure. AUDITORS
The auditors, Grant Thornton, will be re-appointed in accordance with the resolution of The Trustees.
On behalf of the trustees
Signed: Michael Kearns Signed: John Lennon Voorzitter (Chairperson) Penningmeester (Treasurer)
BALANCE SHEET AS AT 31 DECEMBER 2007 (After appropriation of deficit)
ASSETS 31 December 2007 31 December 2006
€ € € € Current assets Debtors 17.617 2.832 Cash at bank 134.526 172.186 152.143 175.018 152.143 175.018 LIABILITIES Capital Surplus 68.767 145.932 Short-term liabilities 83.376 29.086 152.143 175.018 ……….. ………. Signed: Michael Kearns Signed: John Lennon
Voorzitter (Chairperson) Penningmeester (Treasurer)
INCOME AND EXPENDITURE FOR THE YEAR 2007
2007 2006 € € € €
Donation revenue 855.824 506.461
List rental 23.096
-Support from “Hospitaller Order of Saint John of God”
0 180.169
878.920 686.630
Costs
Expenses for projects 260.500 98.069
Employment Costs 44.431 28.743
Other operating expenses 651.602 422.771
956.533 549.583
Operating result -77.613 137.047
Other interest and similar income 448 307
Result on ordinary activities -77.165 137.354
Taxation on result of ordinary activities -
-Result -77.165 137.354
……….. ………. Signed: Michael Kearns Signed: John Lennon
Voorzitter (Chairperson) Penningmeester (Treasurer)
NOTES TO THE BALANCE SHEET AS AT 31 DECEMBER 2007
GENERAL
Accounting principles
The financial statements are based on historical costs. Assets and liabilities are stated at face value, unless stated otherwise.
Surplus are recognized in the year of realization; deficits are taken into account when foreseeable. The accounting principles are explained in the notes of the balance sheet. CURRENT ASSETS
Receivables
31 Dec 2007 31 Dec 2006
€ €
Other receivables 14.071 1.406
Prepayments and accrued income 3.546 1.426
17.617 2.832
Other Receivables
Receivables form list rental 2007 14.071 1.406
Prepayments and accrued income
Cash at bank
31 Dec 2007 31 Dec 2006
€ €
ABN AMRO Bank N.V. 41.45.42.940 58.733 67.626
ABN AMRO Bank N.V. 41.45.42.169 304 6.089
ABN AMRO Bank N.V. 49.37.62.930 - 25.203
Rabobank 3844.21.733 75.489 73.268
134.526 172.186
Capital and reserves Surplus 2007 2006 € € Balance as at 1st of January 145.932 8.578 Deficit / Surplus -77.165 137.354 Balance as at 31st of December 68.767 145.932 Short-term liabilities 31 Dec 2007 31 Dec 2006 € € Creditors 77.039 18.522
Taxation and social security 813 564
Accruals and deferred income 5.524 10.000
Creditors
31 Dec 2007 31 Dec 2006
€ €
Creditors 77.039 18.522
Taxation and social security
Social security premiums and wage tax 813 564
Accruals and deferred income
Auditor’s fee 5.000 10.000
Reservation vacation pay 524 0
5.524 10.000
Contingent liabilities
Long-term financial commitments
NOTES TO THE INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR 2007
GENERAL
Results are recognized as the difference between the realizable value of the delivered performances and services on the one hand and expenses and other charges on the other hand, valued at historical cost and taken into account the other accounting principles as mentioned on page 8.
Donation revenue
Revenue increased in 2007 compared to 2006 with 69,0%
2007 2006
€ €
Donation revenue 855.824 506.461
Support from “Hospitaller Order of St John of God” 0 180.169
Work contracted and other external expenses
Expenses for projects 260.500 98.069
Employment costs
Wages and salaries 38.533 25.195
Social charges 5.353 3.548
Insurance 545 0
Wages and salaries
2007 2006
€ €
Wages and salaries 35.679 23.396
Movement holidays allowance 2.854 1.799
38.533 25.195
Social charges
Social security premiums 5.353 3.548
Employees
During the financial year 2007 the number of parttime staff employed by The Foundation was 5 (average FTE: 1⅓) (2006: Average FTE: 1)
Other operating expenses
Accommodation expenses 13.086 15.582
Office expenses 13.423 31.205
General expenses 18.554 15.429
Selling expenses prospective donors 448.801 274.991 Selling expenses existing donors 90.225 85.564
Donor administration 67.513 0
Accommodation expenses
2007 2006
€ €
Rent 10.156 13.481
Gas, electricity, and water 1.195 670
Repair and maintenance 1.336 1.336
Property tax 242 106
Insurance 157 -11
13.086 15.582
Office expenses
Office supplies 4.516 0
Database software costs 0 29.548
Telephone and telefax 4.580 1.563
Postage 480 0
Contributions and subscriptions 0 10
Other office supplies (169 account) 3.847 84
13.423 131.205 General expenses Auditor’s fee 5.000 5.000 Administration fee 476 1.226 Notarial fee 0 60 Bank charges 10.690 6.877
Other general expenses 2.388 2.266
18.554 15.429
Selling expenses prospective donors
Canvassing 351.055 166.935
Prospect mailing expenses 97.746 108.056
448.801 274.991
1
In 2007, database costs were booked under Donor administration. If this was also done in 2006, office costs were € 1.657,--
Selling expenses existing donors 2007 2006 € € Mailing expenses 90.225 63.951 Consultancy costs 0 21.420 Representation costs 0 0
Travel and accommodation 0 193
90.225 85.5642
Donor administration
Database software costs 43.118 0
Consultancy costs 24.395 0
67.513 0
Financial income and expenses
To: Stichting Internationale Orde van Hospitaalbroeders
AUDITOR'S REPORT
Report on the financial statements
We have audited the accompanying financial statements 2007 of Stichting Internationale Orde van Hospitaalbroeders, Haarlem, which comprise the balance sheet as at 31 December, 2007, the income and expenditure account for the year then ended and the notes.
Management's reJponsibili
Management is responsible for the preparation and fair presentation of the financial statements and for the preparation of the management board report, both in accordance with the Dutch General Excepted Accounting Principles. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditor's responsibili0
Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with Dutch law. This law requires that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Internationale Orde van Hospitaalbroeders as at 31 December, 2007, and of its result for the year then ended in accordance with the Dutch General Excepted Accounting Principles.
16 April 2008
Arenthals Grant Thornton Accountants en Adviseurs B.V.
SignedSW.A. van Es
Registeraccountant
Stichting Internationale Orde van Hospitaalbroeders
TRUSTEES OTHER INFORMATION
Trustees Michael Kearns Patrick McCrory Bernard Larkin John Shannon John Lennon Banks ABN-AMRO Houtplein Postbus 5 2500 MB Haarlem Rabobank Dreef 40 2012 HS Haarlem Auditors Grant Thornton Postbus 2154 2301 CD Leiden
